The first things you, the contractor will need to do are form a limited company and open a business bank account (your accountant will help you with this).

The director controls invoicing, the company bank account and decides on how much to pay themselves, which is made up of a combination of salary and dividends.

The limited company's contract can either be with the end client or the agency and the company can claim as tax free expenses: travel and subsistence, hardware and software, training, professional subscriptions, business telephone, accountancy fees plus any other business costs.

You'll typically take home around 75% - 80% of your contract by working through your own limited company.

For more information on running a Limited Company please contact Castlemaine Associates on 0870 778 0063.